AUDIO – Citigroup

Managers of funds giving international investors access to
China’s often-volatile mainland shares have so far consistently
beaten the market.

These funds, which invest via the country’s Qualified Foreign
Institutional Investor (QFII) scheme, have on average produced
higher returns than China’s domestic A-share market, according to
data from fund research firm Lipper Inc.

That may reflect the less-developed nature of Chinese markets
where the quality of companies is mixed and many retail investors
are inexperienced, say analysts, who caution the trend won’t
necessarily continue.

Citigroup Inc. , the world’s most valuable bank, is keen
to raise its current $550-million QFII investment quota as it
seeks to strengthen its foothold in the mainland’s developing
capital markets.